Agenda - Council - 08/13/2013 - Laserfiche WebLink

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Financial Condition of the School, Building Lease Aid." The School's general revenues are a combination of State aids provided under the following programs: General Education Aid (which coincides with enrollment), Compensatory Aid and Building Lease Aid (which coincides with enrollment), and Federal programs administrated by the State including Title II of the Improving American Schools Act ("IASA"), Responsive Classroom Training and the International Baccalaureate's Primary Years Programme (PYP), Title IV of the IASA, Safe and Drug Free Schools and Title V of the IASA, innovative programs, implementing PYP. Prior enrollment is no guaranty of future enrollment and revenue. In addition, aid payments from the State are not always made on a timely basis, which may result in late payments by the School under the Lease and Pledge Agreement, which may, in turn, result in late payments by the Company under the Loan Agreement. Future revenues and expenditures of the Company will be subject to conditions in the future which cannot be determined with assurance. Prior revenues and expenditures of the School are no guaranty as to future revenue and expenditures of the School. Other Debt and Financial Obligations of the School The School currently does not have any outstanding debt obligations. [?] See "Appendix C — FIVE-YEAR FINANCIAL SUMMARY AND FIVE-YEAR BUDGET PROJECTIONS". Projected Information The Company has not engaged any accounting firm or other independent third party to prepare a forecast of the future operations of the Company. Certain information prepared by the Company and the School concerning the projected operations of the Project is contained in Appendix C. Such projected information is based on assumptions deemed reasonable by the Company and the School, but such assumptions, and the actual future financial impact of the Project on the Company and the School will inevitably vary from the forecast data, and such variance may be material and adverse. Non -Renewal or Termination of Charter Agreement Under the Charter School Act, the ("Authorizer"), as authorizer under the Charter Agreement, may or may not renew the Charter Agreement at the end of any renewal term, or may unilaterally terminate the Charter Agreement (subject to certain reasonable notice and appeal procedures available to the School) upon any of the following grounds: (1) failure to meet the requirements for pupil performance contained in the Charter Agreement; (2) failure to meet generally accepted standards of fiscal management; (3) violations of law; or (4) other good cause shown. Decisions made by Authorizer will depend upon the policies and evaluations of future board members and administrative staff of Authorizer, Although Authorizer has acted as the authorizer of the School and the School expects that the Charter Agreement will be renewed and extended for the term of the Series 2013 Bonds, no assurance can be given that future boards or administrative staffs of Authorizer will continue to renew the Charter Agreement. The School is in the third year of the three-year term of the current Charter Agreement that runs through 30, 2013, and the School has submitted an application for a renewal of the Charter Agreement. The School's renewal application was formally approved by Authorizer for a three- year term on 11, 2013 and the School expects that such renewal will be approved by the 34